Many of you have heard terms such as “share market” ,”shares” ,”market is bullish” but what the word ‘market’ really mean . Lets understand more about share market in this post.

Introduction to Share Market

Share market is also called as stock market . It is the place where shares get traded . Share market is a platform on which traders buy and sell shares . Also it is the place where companies list their shares .Also raise money for their needs this process is called as Initial Public Offering. In share market investor buy shares of their trusted company for investment purpose . Not only share but also mutual funds , bonds ,future and options are get traded in stock market .

 

Components of Stock Market

• SEBI – It is the regulatory board to protect the rights of investors and keep eye on irregular practices in stock market . SEBI is “Securities and Exchange Board of India “.To know more about SEBI click here .
• Brokers – The stock brokers provide platforms to buy and sell shares . Also act as medium to buy and sell stocks in return of minimal charge called as brokerage.
• Stock Exchanges – They are most important part of market . Every transaction in market is takes place on these exchanges .There are two stock exchanges in India . National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
• Investors – Investors is a person who invests in stock market . It can be a normal person with less money or can be a big organization with large amount of money.

Assets in Share Market

• Options – It is like buying or selling a share but for a limited amount of time . It is a contract of stock or index used to hedge positions against market volatility .
• Futures – Future are also used for hedging your positions to protect from loss . It is a contract of buying or selling of stocks for limited time .
• Stocks – Stock are like a owning a small part of company . There are two types of stock public and private . Stocks trading in stock market are publicly listed.